How To Achieve Pay Equity In The Workplace
As talent acquisition consultants in Ho Chi Minh, we’ve talked to many employees who have experienced unfair wages and benefits throughout their careers. And since September 18, 2021 is International Equal Pay Day, it’s the perfect time to discuss how equity in salaries can be implemented at work to achieve a balanced company and a fulfilled workforce.
What is pay equity?
Most companies would like to think that they pay their employees fairly and accordingly, but it doesn’t always happen, creating systemic inequalities that put many at a disadvantage.
Pay equity means compensating people fairly across your whole company, regardless of gender, race, abilities, age, and other arbitrary factors. This means people who are doing the same jobs should be compensated equally and in amounts they deserve.
Why is pay equity important?
When we, recruitment consultants, ask about how candidates feel about their salaries, many of them wished for clear compensation policies. They have indicated that unequal compensation bares the discriminating and uninclusive practices within their companies, and how this contributes to low employee morale and demotivation.
Paying employees fairly and equally is a great way for the company to let them know that they are valued, are paid what they’re worth and more.
To ensure this, here are our suggestions on how to achieve pay equity in the workplace.
Design a fair compensation framework
A compensation framework could be a combination of the following: a pay formula that fairly calculates everyone’s salary according to set factors, or creating salary bands that categorize roles and tenure. This framework should also include industry-standard rates for each and every role. Make sure that all standards are applicable to all employees without exceptions and exemptions.
When you’re ready to roll this out, each employee should be made aware of it, especially during onboarding, so they know what to expect and what to aspire for as they move up the company.
Review employee data and check for pay gaps
When you look at your people’s salaries, try to see if there are any inequalities associated with job titles, levels, departments and such. See if the current system puts people at a disadvantage according to their gender, race and tenure.
Note down all these pay gaps, and strategize how to address them and uphold fair pay among the staff. This may take a while as it’s an audit of your policies, biases and practices, but be committed to breaking down the pay gaps that can cause problems in the future.
Be transparent with your insights and future plans
When you’ve finally designed a compensation framework that makes sense for your company, be prepared to talk about the changes that may come in the near future. Openly talk about the factors that are important in determining fair salaries, how salaries will be adjusted, and the timelines you’re working with. Employees will feel more empowered knowing that their monetary, career, and personal needs are a critical concern of the company. This is also a great opportunity for you to talk about how pay is one way you’re combating discrimination in the workplace.
Vietnam recruitment agency
The Talent Consultants is a talent acquisition consultant in Ho Chi Minh, heavily concerned about fairness, equality, and equity for our candidates in the workplace. We’re advocates of paying people what they deserve as this is critical in attracting and retaining high quality employees in your company. Pay equity can be something that you can discuss in your Employer Value Proposition to keep candidates and staff informed about the measures you take to keep your company a good place to work in. To know more about how you can gain more visibility and engagement with potential and current staff, read more of our blog.